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L'importance des incitations financières dans l'obtention d'un emploi est-elle surestimée ?

Author

Listed:
  • Cyrille Hagneré
  • Nathalie Picard
  • Alain Trannoy
  • Karine Van der Straeten

Abstract

Six models are estimated, incorporating three possible explanatory factors for non-employment which may be substitutable or complementary. They are the weakness of financial incentives, lower productivity than the cost of the minimum wage and labour market shortcomings. The study of participatory behaviour uses a microsimulation model based on the 1998 Taxable Income Survey, while the impact of minimum wage censorship is estimated using 1997 and 1998 Employment Survey data. The study, conducted on one-adult households, shows that the best fit is obtained by models which assume a strict complementarity between minimum wage censorship and participation. A 10% increase, through transfers, in the available income of a female worker earning the minimum wage would induce a 10% increase in the probability of employment.

Suggested Citation

  • Cyrille Hagneré & Nathalie Picard & Alain Trannoy & Karine Van der Straeten, 2003. "L'importance des incitations financières dans l'obtention d'un emploi est-elle surestimée ?," Economie & Prévision, La Documentation Française, vol. 0(4), pages 49-78.
  • Handle: RePEc:cai:ecoldc:ecop_160_0049
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    References listed on IDEAS

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    1. Guy Laroque & Bernard Salanie, 2002. "Labour market institutions and employment in France," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 25-48.
    2. Guy Laroque, 2005. "Income Maintenance and Labor Force Participation," Econometrica, Econometric Society, vol. 73(2), pages 341-376, March.
    3. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    4. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    5. François Bourguignon & Thierry Magnac, 1990. "Labor Supply and Taxation in France," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 358-389.
    6. Nicolas Gravel & Cyrille Hagneré & Nathalie Picard & Alain Trannoy, 2001. "Une évaluation de l'impact incitatif et redistributif d'une réforme des minima sociaux," Revue Française d'Économie, Programme National Persée, vol. 16(1), pages 125-167.
    7. Marc Gurgand & David Margolis, 2001. "RMI et revenus du travail : une évaluation des gains financiers à l'emploi," Économie et Statistique, Programme National Persée, vol. 346(1), pages 103-122.
    8. Guy Laroque & Bernard Salanié, 2002. "Temps partiel féminin et incitations financières à l'emploi," Revue économique, Presses de Sciences-Po, vol. 53(6), pages 1127-1147.
    9. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
    10. Marc Fleurbaey & Cyrille Hagneré & Michel Martinez & Alain Trannoy, 1999. "Les minima sociaux en France : entre compensation et responsabilité," Économie et Prévision, Programme National Persée, vol. 138(2), pages 1-23.
    11. Guy Laroque & Bernard Salanié, 2000. "Une décomposition du non-emploi en France," Économie et Statistique, Programme National Persée, vol. 331(1), pages 47-66.
    12. N. Gravel & C. Hagneré & N. Picard-Tortorici, 2000. "Minima sociaux et offre de travail : Evaluation d'une réforme à l'aide d'un modèle de microsimulation dynamique," THEMA Working Papers 2000-52, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
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    Cited by:

    1. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.
    2. repec:spo:wpmain:info:hdl:2441/5270 is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/5270 is not listed on IDEAS
    4. Damien Échevin, 2003. "L'individualisation de l'impôt sur le revenu : équitable ou pas ?," Economie & Prévision, La Documentation Française, vol. 0(4), pages 149-165.

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    More about this item

    Keywords

    non-employment; financial incentives; minimum wage censorship;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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